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Thursday, 21 November, 2002, 06:47 GMT
Assembly's computer bill tops £64m
Pic of computer screen
The information technology costs are cause for concern
The computer system for staff at the Welsh Assembly cost three times more than it should have done because bureaucrats never considered the possibility that the devolved body would come into being.

At £64m, the system is costing around £20m more than the projected costs of a new assembly chamber in Cardiff Bay.

When the contract for the OSIRIS computer system was originally given to a private company six years ago, Conservative William Hague was Welsh Secretary and devolution was not a prospect.


I don't think it's unreasonable to say that civil servants should have anticipated major changes

Ron Davies

But Wales' top civil servant, Permanent Secretary Sir Jon Shortridge, told the assembly's audit committee the cost soared from £20m to £46 after devolution in 1997.

Extra politicians and staff employed at the assembly have now seen the estimated cost rise to £64m.

Sir Jon was asked by audit committee chairman Dafydd Wigley:"Am I right in saying that no consideration whatsover was given to the possibility of there being an assembly?"

"None at all, no," Sir Jon replied.

"I mean obviously as officials we read the newspapers so we know the way the political current is going.

"But we act in accordance with the requirements of the government of the day."

Surprise

But Caerphilly AM Ron Davies, who as Labour Welsh Secretary set up the assembly, said he was surprised at the admission.

He added: "I don't think it's unreasonable to say that civil servants should have anticipated major changes of this nature."

Assembly chamber
The IT costs now dwarf the bill for a new HQ

The latest costs are nearly £20m more than the estimates for the assembly's £47m new headquarters building in Cardiff Bay.

'Managing risks'

Last month, the assembly's out-of-hours computer support line was criticised by the Auditor General for Wales, after it was found to be costing an average of £6,000 per call.

The demand for the information technology (IT) service was so poor, that it did not meet standards of value for money, concluded Sir John Bourn.

In his report, Sir John wrote: "The report underlines how important it is to manage risks properly, particularly in PFI deals.

Flexibility

"There needs to be flexibility built into the contracts to deal with changes that may happen long after the agreement is first made.

"Where there are key variables such as user numbers, their impact should be analysed.

"The assembly is currently procuring a new IT system. It must now grasp this opportunity to learn from its previous experience."

A new IT system contract for the assembly will be awarded by July 2003.

 WATCH/LISTEN
 ON THIS STORY
Conservative AM Alun Cairns
"The central theme... is whether civil servants were up to the job of negotiating with hard-nosed private-sector companies."
See also:

15 Oct 02 | Wales
15 Oct 02 | Education
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